Topic_03_E2 - Topic 3, Exercise 2 Electronic Markets One of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Topic 3, Exercise 2 Electronic Markets One of the key features of financial markets is to bring investors and issuers of securities together in an efficient fashion. With the advent of technology, more and more market activity is being done electronically. There are numerous active electronic systems in the equity markets. Electronic markets have been a little slower to develop in the debt markets, although formation of new electronic markets has been growing at a rapid rate in the last few years. Electronic markets can be used for both primary market sales and secondary market sales. In a primary market sale, the issuing firm initially sells the security and receives the funds from the sale. In a secondary market sale, an investor decides to sell the security and sells it to another investor. The sale does not involve the issuer directly. The existence of secondary markets makes it easier and less expensive for issuers to sell their securities. CFO Magazine published a report entitled, E-Bonds: Will They Fly?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/13/2011 for the course FIN 6301 taught by Professor El-asmawanti during the Fall '09 term at University of Texas at Dallas, Richardson.

Page1 / 2

Topic_03_E2 - Topic 3, Exercise 2 Electronic Markets One of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online